[slicknic86]

Exercise 1-3A Identifying the reporting entities [L.O. 2]

Carlos Bueso recently started a business. During the first few days of operation, Mr. Bueso transferred $30,000 from his personal account into a business account for a company he named Bueso Enterprises. Bueso Enterprises borrowed $40,000 from the State Bank of Texas. Mr. Bueso's father-in-law, James Bright, invested $64,000 into the business for which he received a 25 percent ownership interest. Bueso Enterprises purchased a building from Leigh Realty Company. The building cost $120,000 cash. Bueso Enterprises earned $28,000 in revenue from the company's customers and paid its employees $25,000 for salaries expense.


Required:

Mention what happened to the cash accounts of the following entities.


Entities
Distribution of Cash

Mr. Bueso (personal account)
Personal account was (Click for List) increased decreased by the $30,000 cash deposited in the Bueso Enterprises' business account.

Bueso Enterprises
Cash account (Click for List) increased decreased by the $30,000 cash deposited by Mr. Bueso.

Cash account (Click for List) decreased increased by $40,000 cash borrowed from State Bank of Texas.

Cash account (Click for List) increased decreased by $64,000 cash invested by James Bright.

Cash account (Click for List) decreased increased by $120,000 cash used to purchase building.

Cash account (Click for List) increased decreased by $28,000 cash revenue earned.

Cash (Click for List) increased decreased by $25,000 when employees received payment for salaries.

State Bank of Texas
Cash account (Click for List) decreased increased by $40,000 cash loaned to Bueso Enterprises.

James Bright, father-in-law, personal account
Cash (Click for List) decreased increased by $64,000 cash invested in Bueso Enterprises.

Leigh Realty Company
Cash (Click for List) increased decreased by $120,000 received from Bueso Enterprises to purchase building.

Bueso Enterprises' customers
Cash (Click for List) decreased increased by $28,000 when customers paid for services performed.

Bueso Enterprises' employees
Cash (Click for List) decreased increased by $25,000 when employees received payment


The answer is either increased or decreased

[morgaine300]

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We're not here to just give you the answers. You need to show your attempts at the problem. And since this is cash, most of it should be pretty logical if you'll just think about it, although there are a couple of interpretive things in all that.